Pandora Media Inc (P): Today's Featured Media Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Pandora Media ( P) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.6%. By the end of trading, Pandora Media rose 23 cents (3%) to $7.80 on light volume. Throughout the day, 2.9 million shares of Pandora Media exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in a price between $7.40-$7.88 after having opened the day at $7.44 as compared to the previous trading day's close of $7.57. Other companies within the Media industry that increased today were: LodgeNet Interactive Corporation ( LNET), up 105.5%, Charm Communications ( CHRM), up 17.9%, Beasley Broadcast Group ( BBGI), up 8.3%, and Salem Communications Corporation ( SALM), up 7.8%.

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Pandora Media, Inc. provides an Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access unlimited hours of free music and comedy, as well as offers a paid subscription service to listeners. Pandora Media has a market cap of $1.27 billion and is part of the services sector. The company has a P/E ratio of -83.4, below the S&P 500 P/E ratio of 17.7. Shares are down 25% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Pandora Media a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Pandora Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

The online music leader has been posting impressive growth ahead of its IPO. But both investors and potential suitors are unlikely to ignore the challenges posed by its business model and stiff competition.